VRL LOGISTICS 2020-21 Annual Report Analysis

Wed, 31 Mar

VRL LOGISTICS has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

VRL LOGISTICS Income Statement Analysis

• Operating income during the year fell 16.8% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 17.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 14.1% in FY21 as against 14.1% in FY20.
• Depreciation charges decreased by 4.6% and finance costs increased by 0.2% YoY, respectively.
• Other income grew by 24.7% YoY.
• Net profit for the year declined by 50.0% YoY.
• Net profit margins during the year declined from 4.3% in FY20 to 2.6% in FY21.

VRL LOGISTICS Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	21,185	17,629	-16.8%
Other income	Rs m	103	129	24.7%
Total Revenues	Rs m	21,289	17,758	-16.6%
Gross profit	Rs m	2,989	2,481	-17.0%
Depreciation	Rs m	1,675	1,598	-4.6%
Interest	Rs m	373	374	0.2%
Profit before tax	Rs m	1,043	637	-38.9%
Tax	Rs m	142	187	31.5%
Profit after tax	Rs m	901	451	-50.0%
Gross profit margin	%	14.1	14.1
Effective tax rate	%	13.6	29.3
Net profit margin	%	4.3	2.6

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VRL LOGISTICS Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 3 billion as compared to Rs 3 billion in FY20, thereby witnessing an increase of 2.2%.
• Long-term debt down at Rs 395 million as compared to Rs 950 million during FY20, a fall of 58.5%.
• Current assets fell 3% and stood at Rs 2 billion, while fixed assets fell 2% and stood at Rs 10 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 12 billion as against Rs 12 billion during FY20, thereby witnessing a fall of 2%.

VRL LOGISTICS Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,169	5,971	-3.2
Current Liabilities	Rs m	2,529	2,586	2.2
Long-term Debt	Rs m	950	395	-58.5
Total Liabilities	Rs m	12,252	11,986	-2.2
Current assets	Rs m	1,815	1,762	-2.9
Fixed Assets	Rs m	10,437	10,224	-2.0
Total Assets	Rs m	12,252	11,986	-2.2

VRL LOGISTICS Cash Flow Statement Analysis

• VRL LOGISTICS's cash flow from operating activities (CFO) during FY21 stood at Rs 3 billion, an improvement of 5.4% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -313 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 54 million from the Rs 3 million net cash flows seen during FY20.

VRL LOGISTICS Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	2,573	2,711	5.4%
Cash Flow from Investing Activities	Rs m	-1,185	-313	-
Cash Flow from Financing Activities	Rs m	-1,384	-2,344	-
Net Cash Flow	Rs m	3	54	1,638.5%

Current Valuations for VRL LOGISTICS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.1, an decline from the EPS of Rs 10.0 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 230.6, stands at 45.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 3.4 times, while the price to sales ratio stands at 1.2 times.
• The company's price to cash flow (P/CF) ratio stood at 8.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	234.5	199.6
TTM Earnings per share	Rs	10.0	5.1
Diluted earnings per share	Rs	10.2	5.1
Price to Cash Flow	x	5.3	8.8
TTM P/E ratio	x	15.1	45.2
Price / Book Value ratio	x	3.2	3.0
Market Cap	Rs m	19,672	18,060
Dividends per share (Unadj.)	Rs	7.0	4.0

Ratio Analysis for VRL LOGISTICS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 0.7x during FY21, from 0.7x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 2.7x during FY21, from 3.8x during FY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 7.5% during FY21, from 14.6% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 15.9% during FY21, from 19.9% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 6.9% during FY21, from 10.4% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	0.7	0.7
Debtors’ Days	Days	148	132
Interest coverage	x	3.8	2.7
Debt to equity ratio	x	0.2	0.1
Return on assets	%	10.4	6.9
Return on equity	%	14.6	7.5
Return on capital employed	%	19.9	15.9

To see how VRL LOGISTICS has performed over the last 5 years, please visit here.

VRL LOGISTICS Share Price Performance

Over the last one year, VRL LOGISTICS share price has moved up from Rs 153.7 to Rs 230.6, registering a gain of Rs 76.9 or around 50.0%.

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for VRL LOGISTICS and quarterly results for VRL LOGISTICS)

Read: Latest Annual Report Analysis of VRL LOGISTICS